Hi :- I need information about income tax deduction relating to salary for the financial year 2007-2008. Also idea about prof tax. Please help me out urgently.
From India, Mumbai
Working As An Accounts Executive

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Below are the new changes in IT:

Exemption limited has been the Increased by the 10,000/-in case of Male Asesseee , Woman and senior citizen Assessee.

· Additional Surcharge is imposed as “Secondary and Higher Education Cess” @ 1% on the (tax+ Surcharge)( wef.1/4/2007)

Perks in case of Rent Free Accommodation:-

Perks value should be @ 20% of salary in case of metro and others case @ 15%

And in case of any rent recover minus from the above ( From 1.4.2006)

Deduction under chapter VI-A

u/s 80D- • Presently, a deduction of Rs 10,000 (Rs 15,000 for senior citizens) is available to individuals and HUFs for any sum paid in respect of medical insurance premium, if the payment is made by cheque.

• This limit is now enhanced to Rs 15,000 (Rs 20,000 for senior citizens) for payment of premium by any mode other than cash.

TDS Provision:- ( w.e.f. June 1, 2007)

Section 194H-Rate has increased to @10%

Section 194I- Incase of Rent of use of plant, Machinery and Equipment, TDS rate would

Be @ 10%

Section 194J- Rate has increased to @10%

Special provisions related to non-residents

Place of rendering service not relevant for determining taxability in India

•An explanation will be inserted in section 9 to clarify that income by way of interest, royalty or fees for technical services deemed to accrue or arise in India will be included in the total income of the non­resident, whether or not the non-resident has a residence or a place of business or a business connection in India .

Surcharge has removed in case of Domestic Company and firm if Total Income not more than 1 core (this will Effect TDS rate hence all the TDS Rate has been revised)



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